Below US$20,000/year, money and happiness are directly correlated. Above an annual income of US$20,000/year money generally doesn't increase people's happiness. The traits that have the highest correlation with personal happiness are our family relationships, our financial situation, our work, our community and friends, our health, our personal freedom and our personal values. Except for health and income, they are all concerned with the quality of our relationships.

However, money can make us happier if we use it in particular ways. (1) buy more experiences and fewer material goods; (2) use money to benefit others rather than themselves; (3) buy many

small pleasures rather than fewer large ones; (4) eschew extended warranties and other forms of overpriced insurance; (5) delay consumption; (6) consider how peripheral features of their purchases may affect their day-to-day lives; (7) beware of comparison shopping; and (8) pay closeattention to the happiness of others.

Long Answer:

Read the book Happiness: Lessons from a New Science, by Richard Layard.

Read this journal article: If money doesn't make you happy, then you probably aren'tspending it right, available at http://www.robymuhamad.com/files/dunnMoneyHappiness.pdf

Money is not everything in this life. Money doesn't buy me happiness. It buys me joy only. But whenever it completes joy goes with it. The happiness that I'm talkin' about is an eternal one. You find the peace in your life. You feel happy the whole time even if you haven't any money. Feeling happy all the time can't happen but if we realy find that peace inside our hearts we will be satisfied in whatever comes in our life.